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Deutsche BÃ¶rse, the Frankfurt-based stock exchange, faces further shareholder opposition after its biggest domestic investor, Union Investment, called for bosses to pay a one-off dividend and abandon its planned share buyback scheme.

Union Investment, the group's fourth largest shareholder with a 4% stake, proposed that the exchange return the full €226.8m ($296.4m) in earnings it had retained from 2004. The proposal was posted as a counter-action on Deutsche Börse's website on Thursday.

Deutsche Börse has already launched a share buyback scheme and is hoping to gain approval to extend the programme at its annual general meeting on May 25.

In its statement, Union Investment said: "Deutsche Börse is overcapitalised, particularly given the absence of foreseeable acquisitions. We believe a complete payout of retained earnings would be the best use of capital for shareholders."